STATE BLOCK GRANT PILOT PROGRAM.

SEC. 116. STATE BLOCK GRANT PILOT PROGRAM. The Airport and Airway Improvement Act of 1982 is further amended by adding at the end the following new section: “SEC. 534. STATE BLOCK GRANT PILOT PROGRAM. “(a) Promulgation of Regulations; Effective Period.— Not later than 180 days after the date of the enactment of this section, the Secretary shall promulgate regulations to implement a State block grant pilot program to become effective on October 1, 1989. Such program shall not be effective after September 30, 1991. “(b) Assumption of Certain Responsibilities.— Such regulations shall provide that the Secretary may designate not more than 3 qualified States to assume administrative responsibility for all airport grant funding available under this title, other than funding which has been designated for use at primary airports. “(c) Selection of State Participants.— The Secretary shall select States for participation in such program on the basis of applications submitted to the Secretary. The Secretary shall select a State only if the Secretary determines that the State— “(1) has an agency or organization capable of administering effectively any block grant made under this section; “(2) uses a satisfactory airport system planning process; “(3) uses a programming process acceptable to the Secretary; “(4) has agreed to comply with Federal procedural and other standard requirements for administering any such block grant; and “(5) has agreed to provide the Secretary with such program information as the Secretary may require. Before determining that any planning process is satisfactory or any programming process is acceptable, the Secretary shall ensure that such process provides for meeting critical safety and security needs and that the programming process ensures that the needs of the national airport system will be addressed in deciding to which projects funds will be provided. “(d) Review and Report.— The Secretary shall conduct an on-going review of the program established under this section, and shall, not later than 90 days before its scheduled termination, report to Congress the results of such review, together with recommendations for further action relating to the program.”.